The Market Demand in a Bertrand Duopoly Is P =

question 10

Multiple Choice

The market demand in a Bertrand duopoly is P = 10 − 3Q,and the marginal costs are $1.Fixed costs are zero for both firms.Which of the following statement(s) is/are true?

• A) P = $1.
• B) Profits of firm 1 = profits of firm 2.
• C) Producer's surplus of firm 1 = producer's surplus of firm 2.
• D) All of the statements associated with this question are correct.

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